Analysts at Goodbody Stockbrokers do not believe AIB will repay €3.5bn owed to the National Pension Reserve Fund but instead think the State's investment arm will convert the debt into more shares in the bank that is already more than 99pc state owned.
In a note to investors, Eamonn Hughes of Goodbody said he thinks AIB's €3.5bn of "preference shares", which are held by the National Pension Reserve Fund on behalf of the State, will convert to equity in the bank. A decision on how and when that will happen will be made before May 2014, he said...............................................Full Article: Source